Krein v. Szewc (In re Szewc)

568 B.R. 348
CourtUnited States Bankruptcy Court, D. Oregon
DecidedMarch 6, 2017
DocketBankruptcy Case No. 14-60928-tmr13; Adversary Proceeding No. 14-6086-tmr
StatusPublished
Cited by4 cases

This text of 568 B.R. 348 (Krein v. Szewc (In re Szewc)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krein v. Szewc (In re Szewc), 568 B.R. 348 (Or. 2017).

Opinion

MEMORANDUM OPINION

THOMAS M. RENN, Bankruptcy Judge

Plaintiffs brought the present adversary proceeding to except a state court judgment from discharge under 11 U.S.C. § 1328(a)(4).1 The proceeding was tried and post-trial briefing is complete. The matter is ripe for decision.

Procedural Background:

On February 3, 2012, Plaintiffs filed suit against Defendants in Jackson County Circuit Court (the State Court Action), seeking money damages and an injunction based on an alleged public nuisance caused by Defendants’ Mastiff dogs. While the State Court Action was pending, Defendants filed a Chapter 13 petition on March 14, 2014. They are presently operating under a Chapter 13 plan dated April 1, 2014 (the Plan), which was confirmed on October 2, 2014.

Plaintiffs filed the instant adversary proceeding on June 25, 2014. They were subsequently granted relief from the automatic stay to prosecute the State Court Action, including pursuing injunctive relief and liquidating damages (Doc. # 103). The Court later clarified the scope of its order to clearly permit any appeal or remand proceeding in the State Court Action (Doc. # 158).

The State Court Action was tried in March and April 2016 on the Second Amended Complaint filed therein. The damages claim was tried to a jury. The claim for an injunction was tried to the court. The jury’s verdict (the Verdict) was issued on April 2, 2016, and was incorporated into a General Judgment (the Judgment) entered on or about May 28, 2016. A' money award was entered against Defendants for $238,942, with post-judgment interest at 9%, plus costs and attorney fees to be determined in supplemental proceedings.2 Plaintiffs now seek to except the money award from Defendants’ discharge. Facts:

Defendants and Plaintiffs are neighbors residing on rural property in Jackson [354]*354County, Oregon. For years, Defendants owned another nearby parcel. In 2013, they transferred that parcel to their daughter, where she presently resides. Plaintiffs’ property borders both Defendants’ and their daughter’s properties.

Since 1999, Defendants have kept up to eleven (11) adult Mastiff dogs outside. Most of the dogs have been kept on their property, although at times several of the dogs have been placed on the property their daughter now owns. With the exception of short lulls, the dogs have continuously barked while Defendants are not at home, which during the workweek can be from 5:00 a.m. to 10:00 p.m. The dogs also bark while Defendants are home, although not as frequently.

In 2005, Defendant Karen Szewc was cited for violation of the Jackson County Code for failing to prevent two (2) dogs from becoming a public nuisance insofar as they “unreasonably caus[ed] annoyance, alarm or noise disturbance at any time of the day or night, by frequent or prolonged noises which may be heard beyond the boundary of the keeper’s property.” JCC 612.09(c)(2). In that matter, Mrs. Szewc argued a “right to farm” defense under ORS 30.930 et seq. In particular, she argued, among other things, the dogs were necessary to protect a certain breed of sheep she raised. An evidentiary hearing was conducted before a hearings officer. On March 22, 2006, the hearings officer issued an order rejecting on multiple grounds the “farm use” defense, and finding and concluding that Mrs. Szewc was in violation of the Jackson County Code. The order gave Mrs. Szewc ten (10) days to take all reasonable and necessary steps to abate the nuisance, including but not limited to debarking or moving the dogs to a different property.3 Despite the order, Defendants continued to keep many barking dogs on the properties.

Plaintiffs, with their residence located in close proximity to the property boundary of Defendant’s and their daughter’s properties, described the noise level at their home as akin to living next to a shooting range or blasting car horns. On a loudness scale of 1-10, Plaintiffs unequivocally rated it a 10. It affected all levels of their daily living. Plaintiffs felt like prisoners in their own home, venturing outside only for short intervals. Even then, Mrs. Krein’s wariness was compounded by cameras Defendants posted around their own property’s perimeters. When Mr. Krein went out, he was forced to listen to music through headphones to drown out the barking. Except for small events with family and close friends, Plaintiffs stopped hosting social gatherings.

The continuous barking caused both Plaintiffs severe emotional distress. Because of the barking, they suffered sleep loss, migraines, chest pains, high blood pressure, and stomach aches.4

Discussion:

Apportionment of Damages:

The jury found Plaintiffs were entitled to $238,942 in damages for approximately fourteen (14) years of injurious conduct. However, neither the jury nor the State Court judge apportioned the damages to any particular period, and the State Court record is otherwise inconclusive on this point. At issue in this proceeding is what portion of the damages are either excluded from Defendants’ discharge as post-petition debt, or excepted [355]*355from it under § 1328(a)(4). Both of these are federal bankruptcy questions where the burden of proof rests with Plaintiffs by a preponderance of the evidence. Hassanally v. Republic Bank (In re Hassanally), 208 B.R. 46, 49 n.4 (9th Cir. BAP 1997) (creditor has burden of proving exclusion from scope of discharge); Barnes v. Roberts (In re Roberts), 538 B.R. 1, 9 (Bankr. C.D. Cal. 2015) (creditor has burden of proving exception to discharge).

The parties agree the damages compensated Plaintiffs through April 2, 2016, the date the Verdict was issued. Exactly when the damages began, however, is ambiguous. The Verdict merely indicates Defendants’ conduct began in “2002.” Plaintiffs’ State Court counsel testified that, although no statute of limitations applied,5 Plaintiffs’ recovery was nonetheless limited by a ten (10) year statute of ultimate repose, and thus they were only entitled to damages commencing February 3, 2002, exactly ten (10) years before they filed the State Court Action.6 This testimony was uncon-tradicted, and the Court will adopt the February 3, 2002, “damage start date.” The awarded damages therefore encompassed 5,173 days. During that entire period, Plaintiffs’ uncontroverted testimony indicated the barking was roughly equivalent both in duration and degree. A per annum apportionment is thus appropriate. Because portions of years need to be computed, a per diem calculation provides even more accuracy. The $238,942 in damages, spread over 5,173 days, equates to $46.19 per diem (rounded).

Portion of Damages Excluded from Discharge as Post-petition Debt:

Section 1328(a) provides for discharge of “all debts provided for by the plan.” Defendants do not dispute that the Plan, with limited exceptions, only “provide[s] for” debts which arose before they filed their Chapter 13 petition on March 14, 2014. The question, therefore, becomes whether any of the apportioned damages arose post-petition. If so, they are excluded from the scope of any discharge Defendants will receive.

“The term ‘debt’ means liability on a claim.” § 101(12).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tucker v. Sansom
N.D. Ohio, 2025
Papillon v. Jones
D. Nebraska, 2020
Plys v. Ang (In re Ang)
589 B.R. 165 (S.D. California, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
568 B.R. 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krein-v-szewc-in-re-szewc-orb-2017.